Collections also fell to ₹2,300 crore, down 15 per cent year-on-year (Y-o-Y), while operating cash flow declined 12 per cent Y-o-Y to ₹1,100 crore. However, the company’s overall net cash position remains strong at ₹15,200 crore, while the net debt position at its commercial arm also remains healthy. The stock, which has shed 18 per cent over the past year, was up more than 1 per cent on Wednesday as the Street shrugged off the Q1 results, encouraged by the strong launch pipeline.
The real estate developer reported subdued presales of ₹660 crore, down 94 per cent from the year-ago quarter. The weak bookings were due to the absence of launches during the quarter. Moreover, the base quarter had included an ₹11,000 crore contribution from Privana North, an ultra-luxury residential project in Gurugram.
Most of the company’s presales in the quarter came from another ultra-luxury project in Gurugram, The Dahlias. About 34 units were sold during the quarter, generating ₹540 crore and taking the proportion of units sold in the project to 65 per cent. The company has maintained its FY27 presales guidance of ₹20,000 crore. Its launch pipeline includes major projects in DLF City (Gurugram), with a revenue potential of ₹8,000 crore to ₹9,000 crore, Arbour Senior Living (Gurugram), Westpark Phase 2 (Andheri, Mumbai), and a project in Goa.
Despite the Gurugram housing market battling a slowdown amid falling volumes, analysts Parvez Qazi and Vasudev Ganatra of Nuvama Research believe DLF’s strong brand and execution track record should help it navigate these challenges. The brokerage has maintained a ‘buy’ rating, with a revised target price of ₹780, up from ₹722 earlier.
Over the medium term, the company has a robust launch pipeline worth more than ₹60,000 crore. Across existing projects, it has a balance inventory worth ₹12,400 crore, which is expected to support booking momentum in the coming quarters. The company invested ₹210 crore in land acquisition during the quarter and, aided by a net cash surplus of ₹1,100 crore, increased its cash position to ₹15,200 crore.
DLF has outlined a robust launch pipeline for the next few quarters, providing healthy near-term visibility for its residential business, JM Financial Research said. Given its steady annuity cash flows and fully paid-up land bank, the company remains well placed to scale up across segments and newer geographies, analysts at the brokerage, led by Sumit Kumar, said. They have maintained a ‘buy’ rating with a target price of ₹765.
In the commercial segment, rental income rose 9 per cent, with the overall rental portfolio of 49.6 million square feet recording an occupancy level of 95 per cent, while the retail portfolio reported occupancy of 97 per cent. With three malls nearing completion, rental income is expected to pick up gradually and stabilise by the second quarter (July-September/Q2) of 2027-28. The company expects exit rentals of ₹7,300 crore to ₹7,500 crore in FY27 and projects mid-teen growth in net operating income over the next four to five years in its rental business.
Analyst Abhishek Lodhiya of Antique Research has maintained a ‘buy’ recommendation with a revised sum-of-the-parts target price of ₹870 per share. The view is supported by the company’s net cash balance sheet, leadership in the National Capital Region, luxury product mix, a launch pipeline of more than ₹60,000 crore, net receivables of ₹11,800 crore, and an estimated cash surplus of ₹16,700 crore from unsold inventory.
Motilal Oswal Research has also maintained a ‘buy’ rating with a target price of ₹755. However, it does not assign a growth premium to the stock, as the potential of DLF’s sizeable land bank is already reflected in its estimates. According to analysts at the brokerage, led by Harsh Pathak, any further upside to valuations would come from new project additions in the Mumbai Metropolitan Region and other markets.
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